Content analysis
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Legalese | ||
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H.S. freshman Avg
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New words:
abetted, adjudication, allege, allegedly, appeal, Bluestone, budgetary, builder, Cathy, Circuit, clarity, club, CME, Coal, compounded, conveyance, COO, counsel, County, coupled, covenant, cutting, declaratory, dedicate, dedicating, deny, denying, depth, disseminated, District, divert, Dodd, empowering, encumbered, endgame, entertainment, equilibrium, explore, fashion, fiduciary, Frank, fraudulent, Georgia, granular, Greenbrier, Greensill, guaranty, heard, HTC, ICS, igniting, image, incidental, incremental, indemnification, indemnify, indemnity, indeterminate, inhibit, injunctive, intensity, interfered, invalid, inverted, IRT, Israel, jointly, labeled, LITHC, maker, media, missed, monetize, neutral, NIST, nonpayment, oppose, oral, outright, Palestine, passion, penetration, people, poor, posture, pressure, printing, proactive, procedural, proceed, promissory, prosper, punitive, quicker, recourse, rent, repackaged, Republic, research, reside, resided, ROU, safeguarding, seasonal, shortening, signaled, Signature, Silicon, slightly, son, Southern, Sporting, steady, Steering, technical, tortiously, tracking, trustee, turmoil, UK, unanticipated, underscored, unenforceable, unforeseen, uninsured, upheld, Valley, vigorously, void, vulnerability, warehouse, West, Western, wife, window
Removed:
averaged, caring, choice, collapse, comparing, creation, credited, dependence, determinable, diversification, estimable, EVE, exacerbate, exiting, explicitly, foundation, goodwill, hotel, hypothetical, identifiable, inclusivity, incorporate, indefinite, intangible, intentional, judgement, landscape, methodically, mission, optimism, optionality, parallel, phased, presence, preserve, pretax, privileged, publication, renewed, retired, reversal, robust, runoff, Simplifying, structural, threatened, tied, today, transformation, unprecedented
Financial report summary
?Risks
- Nonperforming assets can take significant time to resolve and may adversely affect the Company’s results of operations and financial condition, and could result in further losses in the future.
- The Company’s level of credit risk is elevated due to relationship exposure to the Company’s largest lending relationship.
- A large percentage of the Company’s commercial loans are secured by real estate, and an adverse change in the real estate market or in economic conditions more generally may result in losses and adversely affect our profitability.
- The Company relies on independent appraisals to determine the value of the real estate which secures a significant portion of our loans, and the values indicated by such appraisals may not be realizable if foreclosure on such loans is forced.
- The Company’s level of credit risk is elevated due to the concentration of commercial real estate loans and commercial real estate construction loans in its portfolio.
- Our allowance for credit losses may be insufficient.
- Our real estate lending business can result in increased costs associated with Other Real Estate Owned (“OREO”).
- A failure in or breach of our operational or security systems or infrastructure, or those of third parties, could disrupt the Company’s businesses, and adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.
- A cyber-attack, information or security breach, or a technology failure of ours or of a third-party could adversely affect the Company’s ability to conduct business or manage exposure to risk, resulting in the disclosure or misuse of confidential or proprietary information, increase costs to maintain and update our operational systems, security systems, and infrastructure, and adversely impact results of operations, liquidity and financial condition, as well as cause reputation harm.
- The Company is dependent on its management team, and the loss of any senior executive officers or other key personnel could impair its relationship with its customers and adversely affect its business and financial results.
- The success of our business strategies depends on our ability to identify and recruit individuals with experience and relationships in our primary markets.
- The Company’s business is subject to interest rate risk and fluctuations in interest rates may adversely affect its earnings and capital levels.
- The value of our investment securities could decline.
- Changes in interest rates could adversely affect our income and cash flows and may result in higher defaults and lower collateral values in a rising rate environment.
- Inflation could negatively impact our business, our profitability, and our stock price.
- Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance by financial institutions or transactional counterparties, may have a material adverse effect on our financial condition and results of operations.
- The Company’s liquidity could be impaired by an inability to access short-term funding or the inability to monetize liquid assets.
- We rely substantially on deposits obtained from customers in our target markets to provide liquidity and support growth, and impairment of our access to funding may negatively affect our financial performance.
- Our profitability depends significantly on economic conditions.
- We face strong competition from financial services companies and other companies that offer banking services which could negatively affect our business.
- Our customers may increasingly decide not to use the Bank to complete their financial transactions, which would have a material adverse impact on our financial condition and operations.
- We are subject to extensive government regulation and supervision.
- Regulatory capital standards may require the Company and the Bank to maintain higher levels of capital and liquidity, which could adversely affect its return on equity and otherwise affect its business.
- Failure to maintain effective systems of internal control over financial reporting and disclosure controls and procedures could have a material adverse effect on our results of operation and financial condition.
- Claims and litigation against the Company could result in significant expenses or losses or damage to our reputation, which may have a material adverse effect on its financial condition, results of operation or business.
- Our risk management framework may not be effective in mitigating risk and loss.
- Our earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies.
- Increased scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to environmental, social and governance (“ESG”) practices may impose additional costs on the Company or expose it to new or additional risks.
- The market price of our common stock may fluctuate significantly in response to a number of factors.
- Future issuances of the Company’s common stock could adversely affect the market price of the common stock and could be dilutive.
- Common stock is equity and is subordinate to the Company’s existing and future indebtedness and effectively subordinated to all the indebtedness and other non-equity claims against the Bank.
- CARTER BANKSHARES, INC. AND SUBSIDIARIES
Management Discussion
- •Net interest income decreased $17.6 million, or 12.6%, to $122.3 million for the year ended December 31, 2023 compared to the same period in 2022 primarily due to an increase of 156 basis points in funding costs and the $30.0 million year-to-date negative impact of placing the Bank’s largest lending relationship in nonaccrual status during the second quarter of 2023, partially offset by an increase of 59 basis points in the yield on earning assets due to the higher interest rate environment;
- •The provision for credit losses increased $3.1 million to $5.5 million for the year ended December 31, 2023, compared to the same period in 2022;
- •Total noninterest income decreased $3.4 million to $18.3 million for the year ended December 31, 2023 compared to the same period in 2022;